21 Feb 2018

Appellate court confirms judgment against Credit Suisse Group AG

DALLAS – February 21, 2018 – Highland Capital Management Fund Advisors, L.P. and NexPoint Advisors, L.P. announce today that the Texas Court of Appeals confirmed an aggregate $351 million award in favor of the Highland Floating Rate Opportunities Fund (NYSE: HFRO) (“HFRO”) and the NexPoint Credit Strategies Fund (NYSE: NHF) (“NHF”, and together with HFRO, the “Funds”). Of this aggregate award, HFRO would receive a total of $289 million ($236.5 million in damages together with an additional $52.5 million in post-judgment interest) and NHF would receive a total of $62.3 million ($51 million in damages together with an additional $11.3 million in post-judgment interest). Each of these amounts remains subject to deduction for applicable attorneys’ fees and other litigation related expenses. The judgment will continue to accrue at 9% simple interest per year until this matter is finally resolved.

“Today’s ruling is a major milestone in our efforts to recover damages for our investors,” said James Dondero, co-founder and president of Highland Capital Management, L.P. “We are pleased the appellate court recognized the harm caused to our investors by Credit Suisse’s fraud and breaches of contract.”

The confirmation by the Texas Court of Appeals remains subject to appeal to the Texas Supreme Court. No assurance can be given that the Funds will be successful if the Texas Supreme Court grants certiorari to hear the case; it is not known when or how much, if any, of these monies the Funds will receive. As a result, in accordance with accounting principles generally accepted in the United States (“GAAP”), this judgment is not currently recorded as an asset of the Funds. We expect the judgment amounts to be recorded as an asset of the Funds if and when the judgment no longer is subject to any further appeal.

Highland Capital Management Fund Advisors, L.P. and NexPoint Advisors, L.P. are retail arms of Highland Capital Management, L.P. (“Highland”), an SEC-registered investment adviser that, together with its affiliates, has approximately $14 billion of assets under management. Founded in 1993 by James Dondero and Mark Okada, Highland is one of the largest and most experienced global alternative credit managers. Highland specializes in credit strategies, including credit hedge funds, long-only funds and separate accounts, distressed and special-situation private equity, and collateralized loan obligations (CLOs). Highland also offers alternative investments, including emerging markets, long/short equities, and natural resources. Highland’s diversified client base includes public pension plans, foundations, endowments, corporations, financial institutions, fund of funds, governments, and high net-worth individuals. Highland is headquartered in Dallas, Texas and maintains offices in New York, Buenos Aires, Sao Paolo, Singapore, and Seoul. For more information visit highlandcapital.com.

Highland Floating Rate Opportunities Fund is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. The Fund invests primarily in senior floating-rate interest securities. No assurance can be given that the Fund will achieve its investment objectives.

NexPoint Credit Strategies Fund is a closed-end fund managed by NexPoint Advisors, L.P. The Fund’s investment objectives are to provide both current income and capital appreciation. The Fund is invested primarily in below investment grade debt and equity securities and has the ability to hedge risk. The Manager attempts to deliver consistent returns in excess of the Dow Jones Credit Suisse Hedge Fund and the HFRX Global Hedge Fund indices in a transparent, registered fund format consistent with monthly dividends. No assurance can be given that the Fund will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value. The price of the Fund’s shares is determined by a number of factors, several of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade at, below or above net asset value. Past performance does not guarantee future results.

Before investing, you should carefully consider each respective Fund’s investment objectives, risks, charges and expenses. For a copy of a prospectus or summary prospectus which contains this and other information, please visit our website at highlandfunds.com or nexpointadvisors.com. Please read each Fund’s respective prospectus carefully before investing.

Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Highland disclaims any obligation to update or revise any statements or views expressed herein.